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JOINT CIRCULAR No. 01/2003/TTLT-BKH-BTC OF JANUARY 6, 2003 GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’S DECISION No. 42/2002/QD-TTg OF MARCH 19, 2002 ON MANAGEMENT AND ADMINISTRATION OF NATIONAL TARGET PROGRAMS

Pursuant to the Prime Minister’s Decision No.71/2001/QD-TTg of May 4, 2001 on "the National Target Programs in the 2001-2005 Period";

Pursuant to the Prime Minister’s Decision No. 42/2002/QD-TTg of March 19, 2002 on management and administration of national target programs,

The Ministry of Planning and Investment and the Ministry of Finance hereby jointly guide the management and administration of national target programs as follows:

Part I

THE PLANNING OF NATIONAL TARGET PROGRAMS

The planning of national target programs covers the following working processes:

- Proposing programs, projects;

- Elaborating programs, projects;

- Appraising, approving programs, projects;

- Implementing programs, projects;

- Monitoring, inspecting and evaluating the situation of implementing programs, projects.

I. PROPOSING NATIONAL TARGET PROGRAMS

The ministries, branches and central agencies shall base on criteria of national target program, prescribed in Article 3 of Decision No. 42/2002/QD-TTg to propose to the Ministry of Planning and Investment and the Ministry of Finance lists of national target programs (hereinafter abbreviated to NTPs) of their respective branches in the plan period. This work is carried out at the stage of guiding the elaboration of plans (April, May every year).

The major contents of the NTP- proposing documents shall include:

1. The necessity to settle issues through NTPs.

2. The overall objectives of the programs.

3. The estimated time for implementation of the programs.

4. The geographical areas for implementation of the programs.

5. The preliminary determination of the total capital amounts of the programs, split up according to capital sources.

6. The preliminary calculation of the affected subjects, the beneficiaries and efficiency of the programs.

7. International cooperation (if any).

8. Recommendations on the managing agencies, the coordinating agencies and program-, project- implementing agencies.

The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance in synthesizing, selecting lists of NTPs proposed by ministries, branches and/or central agencies and recommending the program-managing agencies, and submit them to the Prime Minister for consideration before submitting them to the National Assembly for adoption together with annual and five-year plans. After they are adopted by the National Assembly the NTP- managing agencies shall take initiative in elaborating programs or projects in coordination with the Ministry of Planning and Investment, the Ministry of Finance and the concerned ministries, branches and localities.

For the 2001-2005 period, the Prime Minister has already approved the list of NTPs in his Decision No.71/2001/QD-TTg of May 4, 2001; therefore, no more NTPs shall be proposed for the 2001-2005 period.

II. ELABORATING NATIONAL TARGET PROGRAMS

The elaboration of NTPs is carried out simultaneously with the elaboration of annual and five-year plans. The contents of NTP documents include:

1. The bases for elaboration of NTPs:

1.1. Determining the objective requirements to formulate programs, including:

- Analyzing and evaluating the current situation of the domains to be handled by the NTPs.

- Basing on the data and the most typical socio-economic targets in a number of years to scrutinize the development trends of the issues to be settled by the programs.

1.2. Comparing the targets of various zones, regions and the world in order to determine the urgency of the issues to be tackled.

1.3. The social issues committed by the Vietnamese Government to the world.

2. Objectives of NTPs:

The objectives of NTPs must lie within the general strategy for socio-economic development of the country. One NTP may have one or several objectives, which, however, must be clear, quantifiable and easy for calculation, inspection and evaluation of the attainment. They can be classified into immediate objectives and long-term objectives upon the completion of the NTP.

3. NTP- implementing duration is the duration needed for the attainment of the program’s objectives. This duration must be limited, usually 5 years.

4. Operation scope of NTPs: The operation scope of an entire program and each project is the limit of direct impacts of the program, project on which branch, which domain, which region or on the whole country.

5. Necessary solutions to ensure the implementation of NTPs:

5.1. Capital source solution:

- The solution to capital sources of NTPs means the determination of measures to ensure the total capital amounts needed for the achievement of the objectives of the programs. The total capital amounts shall be calculated on the basis of the capital amount of each project for the whole program-implementing period and for each year.

- The capital sources of NTPs shall include:

a) The State budget capital (including ODA loan capital and aid capital).

b) Domestic credit capital.

c) Capital mobilized from the community (in cash, in kind and in work days...).

The above capital sources must be clearly stated in terms of mobilization measures, modes of borrowing and repayment and efficiency analysis; and at the same time must be clearly defined into the central capital and local capital; capital construction capital and non-business capital.

5.2. Human resource solution:

- Including solutions to ensure enough personnel for the implementation of NTPs, including the management and implementation deployment.

- Calculating managerial expenses, training expenses, including expenses for hiring foreign experts (if any).

5.3. Solutions on supplies, raw materials, means, equipment and machinery:

- Description of selected technologies in terms of economic and technical features, evaluation of compatibility extent, pluses and minuses;

- Sources of supply of technologies, equipment and machinery and the reasons for the selection (with priority given to the purchase of home-made goods);

- The list and price index of principal equipment and machinery and modes of procurement (domestic or international bidding)....

6. Efficiency of NTPs:

When elaborating and evaluating the implementation of NTPs, the program-managing agencies must determine the programs’ results through targets and indexes in various aspects: the socio-economic benefits brought about; the subjects benefiting from the results of operation of projects as well as the entire program; the question of environment, ecology and raising of the managerial capability of the contingent of officials engaged in administering the implementation of the programs, projects.

7. Recommending and proposing mechanisms and policies for implementation of NTPs:

The specific policies applicable to NTPs and integrating activities having similar contents with other NTPs (if any).

7.1. Integrating activities having similar contents with other NTPs.

The program-managing agencies shall have to propose the integration of activities having similar contents with other NTPs (if any) and the model and mechanism for effecting the integration.

7.2. Issues requiring international cooperation in NTPs (if any)

If the cooperation with international organizations or foreign organizations is needed for the implementation of NTPs, the program-managing agencies must clearly state the purposes, contents and forms of cooperation and resources of the parties participating in the cooperation (the foreign party and the Vietnamese Government party) as well as the duration for implementation and issues requiring the handling opinions of the Government.

7.3. Policies and mechanisms to be promulgated for application to the implementation of programs.

8. Managing and administering the implementation of NTPs:

8.1. The NTP-managing agencies shall set up the program-managing boards. The composition and operation regulation of the NTP-managing boards shall be decided by the heads of the program-managing agencies.

8.2. For NTPs of special importance and inter-branch character, the NTP-managing boards should be composed of members from the concerned ministries, branches and central agencies. The composition and operation regulations of these NTP-managing boards shall be decided by the Prime Minister at the proposals of the agencies assigned to manage the programs.

Assisting the NTP-managing boards are the program offices.

9. Monitoring, inspecting and supervising, evaluating the implementation of NTPs:

9.1. Determining the system of norms reflecting the implementation of programs, projects, including input and output norms and the indexes on the impacts of programs, projects.

9.2. Determining the regime of gathering information and reporting on the situation of implementing programs and projects, the plans to monitor, inspect, monitor and evaluate the implementation of each project and the entire program, including the implementation duration, the implementing agencies, contents and criteria serving as basis for monitoring, inspecting, supervising and evaluating the implementation situation, reporting forms and time table and report-receiving agencies.

10. Projects in NTPs

Projects in NTPs are drawn up to settle an objective or a group of specific objectives of the programs within a specific period of time and at specific places.

For State budget-funded projects, the following basic contents are required:

(1) The projects’ names.

(2) The project-managing agencies, the implementing agencies, the coordinating agencies.

(3) The major targets and contents of the projects:

- Outline of the general situation, the reasons and necessity of the projects.

- The determination of specific objectives of the projects in relation to the general objectives of the NTPs.

- The determination of the basic contents and tasks of the projects.

(4) Project-implementing solutions:

- Specific schemes and places for deployment of the projects;

- The financial requirements, distributed according to sources of supply and spending contents;

- The proposals on mechanisms and policies for implementation of projects, clearly stating the contents and mechanism for integration (if any);

- The models for management organization and operation mechanism.

(5) Project-implementing duration: The starting and concluding time points.

(6) Beneficiaries of the projects, the estimated socio-economic impacts of the projects.

(7) Plans for carrying out major activities of the projects, divided for each year.

For NTPs already approved under Decision No. 71/2001/QD-TTg of May 4, 2001 of the Prime Minister, it is necessary to draw up annual detailed plans on the objectives, tasks and fund demand.

III. APPRAISING AND APPROVING NTPs

After completing the drafting of NTP documents, the program-managing agencies shall send them to the Prime Minister, the Ministry of Planning and Investment and the Ministry of Finance. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the concerned ministries, branches and central agencies in organizing the appraisal of the programs and submitting them to the Prime Minister for consideration and decision.

1. The dossiers of appraising NTPs include:

- The written request for NTP appraisal of the program-managing agency;

- The NTP documents already adopted by the program-managing agency;

- The draft decision of the Prime Minister, approving the NTP;

- Comments contributed by the concerned ministries, branches, central agencies and localities.

- Other relevant necessary documents (if any).

The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the concerned ministries, branches, central agencies and localities in organizing the appraisal of NTPs, making the appraisal report, drafting the Prime Minister’s decisions approving the NTPs and submitting them to the Prime Minister for consideration and decision.

The NTP-appraising duration shall not exceed 45 days as from the date of receiving the valid dossiers.

The appraisal of projects in each NTP shall be considered and decided by the program director according to the current regulations. If the projects belong to group A, complete dossiers must be compiled and sent to the Ministry of Planning and Investment for appraisal before they are submitted to the Prime Minister for approval; if the projects belong to group B, the ministers of the program- or project- managing agencies shall approve them.

2. The contents of appraisal of NTPs shall focus on the following points:

- The programs’ objectives: To be considered and compared with the tasks of general socio-economic development of the country;

- The implementation scope, the beneficiaries of the programs;

- The total capital amounts of the programs; the capital structure; the capitals of component projects;

- The program-implementing solutions, including solutions to resources, financial balancing capability;

- The program-implementing duration;

- The implementation results and socio-economic impacts of the programs;

- Ways of organizing the implementation of programs.

Upon the appraisal of programs, the number of objectives, the number and contents of projects in the programs shall be considered and agreed upon.

3. Drafting the Prime Minister’s decisions approving NTPs.

Major contents of such a decision shall include:

- The full name of the NTP and the program-managing agency;

- The objectives and tasks of the NTP;

- The time and place for implementation of the program, major time points in the schedule;

- The total capital amount and capital structure, including the State budget capital invested in the program;

- The responsibilities of the coordinating agencies for implementation of the program;

- The mechanisms and policies for implementation of the program;

- The impacts to be achieved by the program.

IV. ADJUSTING THE CONTENTS OF NTPS

The adjustment of NTPs’ contents shall comply with the provisions in Article 8 of Decision No. 42/2002/QD-TTg and a number of specific provisions as follows:

1. In the course of implementation, if deeming it necessary to change the contents of NTPs, the program-managing agencies shall have to propose in writing the adjustment of contents of NTPs to the Ministry of Planning and Investment and the Ministry of Finance (in July and August every year) so as to ensure that the adjusted contents of programs, projects shall be implemented right at the begining of the subsequent year.

2. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance in organizing the appraisal of contents of the written adjustment proposals of the program-managing agencies and submit them to the Prime Minister for approval (within 30 days as from the date of receiving the documents).

3. After the adjusted contents of the NTPs are approved by the Prime Minister, the program-managing agencies shall adjust the contents of the projects of the NTPs, aiming to ensure the projects’ objectives within the total funding amount already assigned (within 30 days).

V. INTEGRATING ACTIVITIES WITH SIMILAR CONTENTS OF NTPs.

The integration of activities with similar contents of NTPs shall be carried out right at the stage of synthesizing and allocating annual plan targets at the level of province or centrally-run city. On the basis of the total capital sources of the NTPs and the objectives as well as tasks of each NTP, assigned by the Prime Minister for implementation in the localities, the presidents of the People’s Committees of provinces and centrally-run cities shall coordinate and integrate activities with similar contents of the NTPs in the same localities; assign objectives, tasks and funding according to the objectives and tasks of each NTP and assign plans to urban districts, rural districts and project owners for implementation; assign responsibilities to provincial/municipal specialized Services for organizing the administration of urban districts, rural districts and project owners in deploying the fulfillment of objectives and tasks of the NTPs in the localities. The integration requires the observance of the implementation of objectives and tasks of each NTP, strictly observing the principle that the work of any branch shall be done by that branch which shall direct the activities of NTPs to the right objects and the priority localities.

Part II

FINANCIAL MECHANISM FOR NATIONAL TARGET PROGRAMS

I. PLANNING THE RESOURCES OF NTPs

1. Annually, under the plan elaboration guidance of the Ministry of Planning and Investment and the Ministry of Finance, the ministries, branches, central agencies and localities, which implement NTPs, must assess the situation of implementation in the reporting year, propose the plan year’s requirements as well as change (if any) of projects’ objectives when deeming that such objectives are not suitable and close to the practical situation of the localities to the program-managing agencies, the Ministry of Planning and Investment and the Ministry of Finance.

2. Basing themselves on the five-year and annual targets of the NTPs, the program-managing agencies shall assess the situation of implementation of the programs in the reporting year, synthesize them and propose the programs’ demands for resources in the plan year, including State budget capital (domestic capital, borrowed capital and foreign aid, and at the same time divided according to sources of investment capital and non-business capital), domestic credit capital, and capital mobilized from the community, and send them to the Ministry of Planning and Investment and the Ministry of Finance.

3. After receiving the demands from the program-managing agencies, the ministries, branches, central agencies and localities, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance in synthesizing the tasks and targets of NTPs and propose resources to ensure the fulfillment of targets and tasks of NTPs in the plan period and submit them to the Prime Minister for consideration and submission to the National Assembly for adoption.

II. ALLOCATION OF CAPITAL AND ASSIGNMENT OF PLANS TO NTPs

1. Allocation of capital of NTPs:

Basing themselves on the total funding of programs, notified by competent authorities, the NTP- managing agencies shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in projecting the plans on allocation of funds of the NTPs to each project and specific levels for ministries, branches, central agencies and provinces as well as centrally-run cities in accordance with the approved objectives and tasks (where still exists divergent opinions on capital structure and specific capital levels to implementing units, the opinion of the program-managing agency is the decisive one).

The results of allocation of objectives, tasks and funding of NTPs shall be sent to the Ministry of Planning and Investment and the Ministry of Finance for synthesizing them into the general budgets of the ministries, branches, central agencies, provinces and centrally-run cities before they are submitted to the Prime Minister for decision.

2. Assignment of plan norms of NTPs.

2.1. The Prime Minister shall assign the ministries, the ministerial-level agencies, the Government-attached agencies, the central agencies and the presidents of the provincial/municipal People’s Committees the following norms:

- The total fund of all NTPs, including the development investment capital and the non-business funding;

- The objectives and tasks of each NTP to be implemented in the localities.

2.2. Responsibility to allocate NTP cost estimates

For ministries, branches, central agencies: Basing themselves on the budget estimates assigned by the Prime Minister and guided by the Ministry of Finance as well as the Ministry of Planning and Investment, to assign tasks, objectives and to allocate funding to the implementing units, send them to the Ministry of Finance according to regulations for appraisal and use as basis for budget allocation.

For provinces and centrally-run cities: Annually, basing themselves on the total budget estimates and objectives as well as tasks of the NTPs, assigned by the Prime Minister, the mobilization of local resources as prescribed by law for supplement to the implementation of NTPs, the provincial/municipal People’s Committees shall coordinate, integrate and allocate funding for each objective, each task of the NTPs to be implemented in the localities (including development investment capital and non-business capital) and submit them to the provincial/municipal People’s Councils for approval together the allocation of annual local budget estimates.

3. Mechanism for allocating and settling funds of the NTPs.

3.1. The funds for implementation of NTPs are included in the central budget expenditure estimates allocated by the Ministry of Finance to the ministries, branches, central agencies for the performance of tasks of the centrally-managed NTPs and additionally allocated with targets to provinces and centrally-run cities for fulfillment of objectives and tasks of the locally-managed NTPs.

The allocation, management and settlement of the expenditure funds for NTPs shall comply with the State Budget Law and the current guiding documents.

Particularly the State budget capital newly allocated for lending to create jobs shall be allocated for lending under the provisions in the Government’s Decree No.78/ND-CP of October 4, 2002 on credit for the poor and other social policy beneficiaries.

3.2. The spending regime applicable to the NTPs shall comply with the current financial expenditure regime applicable to expenditures from sources of State budget capital, loan capital, aids, credit capital and the special expenditure regime of each program, project (if any).

Part III

ASSIGNMENT AND DECENTRALIZATION OF MANAGEMENT AND ADMINISTRATION OF NATIONAL TARGET PROGRAMS

1. The Ministry of Planning and Investment:

- To act as the main body assisting the Government in the management and administration of NTPs.

- To propose and select lists of NTPs for submission to the Government.

- Based on the 5-year and 10-year socio-economic development orientations of the State and the proposals of the ministries, branches, central agencies and localities, to coordinate with the Ministry of Finance in selecting and making the list of NTPs, propose the program-managing agencies, synthesize and submit them to the Government for consideration before they are submitted to the National Assembly for adoption of the list of NTPs to be implemented in the plan period.

- To assume the prime responsibility and coordinate with the Ministry of Finance as well as the concerned ministries, branches and central agencies in organizing the appraisal of NTPs and submit them to the Prime Minister for approval.

- To assume the prime responsibility together with the Ministry of Finance in proposing the total State budget fund allocated to each specific NTP (including the non-business fund and the development investment capital), and submit it to the Government for consideration before it is submitted to the National Assembly for adoption.

- To assume the prime responsibility and coordinate with ministries, branches, central agencies and localities in working out mechanism for management and administration of the NTPs and submit it to the Prime Minister for promulgation.

- To sum up and report to the Prime Minister and concurrently to the Ministry of Finance on the situation of implementation of the NTPs every quarter, the whole year and in the middle of period; to detect problems and shortcomings and propose to the Prime Minister measures for timely handling thereof.

- To join the NTP- managing agencies in elaborating, allocating funds of the programs according to their tasks and objectives.

- To sum up the schemes on allocation of development investment capital and non-business capital of the NTPs to be allocated by the program-managing agencies, and report them to the Prime Minister for consideration and decision.

- To sum up the sources of funding already allocated to the ministries, branches, central agencies, provinces and centrally-run cities into the general plans of the ministries, branches, localities, and submit them to the Prime Minister for decision.

- To inform the program-managing agencies and localities of the orientations for elaboration of annual plans of the NTPs.

- To coordinate with ministries and branches in organizing the inspection and supervision of the situation of implementation of the NTPs by the ministries, branches, central agencies and localities.

2. The Ministry of Finance:

- To coordinate with the Ministry of Planning and Investment in selecting and making list of NTPs, projecting the program- managing agencies, propose the total State budget allocations to the NTPs (including non-business funding and development investment capital).

- To join the program-managing agencies in allocating the programs’ funding according to tasks and objectives.

- To synthesize the schemes on allocation of fund for implementation of NTPs into the annual budget estimates of the ministries, branches, central agencies and localities for submission to the Prime Minister, then to the National Assembly Standing Committee for decision.

- To allocate funding already included in the annual central budget expenditure estimate to the ministries, branches and central agencies for the performance of tasks and objectives of the centrally-managed NTPs; to additionally provide targeted funding for the provinces and centrally-run cities according to the fund-allocating plans of the NTPs managed by the provinces and centrally-run cities.

- To guide, inspect and supervise the situation of implementation of funding of the NTPs of the ministries, branches, central agencies and localities according to the current financial regimes.

- To examine and notify the annual settlement of NTP funding in the State budget settlement made by the central agencies;

- To integrate the NTP expenditure settlements into the annual general State budget settlements of the ministries, branches, central agencies and localities and submit them to the Government for submission to the National Assembly for ratification.

3. For the NTP- managing agencies:

- To assume the prime responsibility and coordinate with the ministries, branches and localities in organizing the elaboration of programs or projects according to their assigned tasks (including the adjustment of programs and projects when necessary), send them to the Ministry of Planning and Investment and the Ministry of Finance for appraisal and submission to the Prime Minister for approval.

- To organize the approval of projects under the programs, submit to the Prime Minister for consideration and decision projects falling beyond their competence.

- To draw up annual plans for implementation of programs. This is the major task of the program-managing agencies and shall be carried out according to the following specific contents:

+ Annually, the program-managing agencies shall have to draw up plans on tasks, objectives and funding demands and propose solutions to implement the programs and submit them to the Ministry of Planning and Investment and the Ministry of Finance for sum-up and submission to the Government.

+ Basing on the programs’ total funding levels notified by competent authorities, the program-managing agencies shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in projecting the allocation of funding of the programs regarding the structure and level of capital specifically allocated to the ministries, central agencies and provinces as well as centrally-run cities in accordance with the approved objectives and tasks.

The results of allocation of capital, objectives and tasks of the programs shall be sent to the Ministry of Planning and Investment and the Ministry of Finance for inclusion into the general budgets of the ministries, branches, central agencies and provinces as well as centrally-run cities, and for submission to the Prime Minister for decision.

- To guide the hierarchical bodies in localities to coordinate with the provincial/municipal Services of Planning and Investment and the Finance-Pricing Service in drawing up plans for implementation of programs (including objectives, tasks, funding and policies, mechanism and measures for organization of implementation, etc.) for general synthesis into the socio-economic development plans of the localities.

- To set up the program- managing boards to assist the heads of the program-managing agencies in organizing the implementation of programs; to dissolve the program-managing boards upon the completion of the programs.

Such a board is composed of a program manager being a leader of a ministry or central agency; and members being competent representatives of the sections of planning, accountancy and concerned sections. The regulation on operation of the NTP managing boards shall be decided by the program-managing agencies. The funding for operation of the NTP managing boards shall be arranged in the regular operation funding of the NTP-managing agencies. The spending regime applicable to the NTP- managing boards shall comply with the regulations of the Ministry of Finance.

- For NTPs of special importance, the representatives of ministries and central agencies should join the program-managing boards as their members. The composition and operation regulation of the program-managing boards shall be decided by the Prime Minister.

- To assume the prime responsibility and coordinate with functional agencies in elaborating mechanisms, policies and professional instructions for ministries, central agencies and provinces as well as centrally-run cities for use as bases for implementation.

- To coordinate with the Ministry of Finance in guiding the spending contents and regimes suitable to each objective or each task of the NTPs.

- To urge, inspect and supervise the situation of implementation of NTPs of the ministries, branches, central agencies and provinces as well as centrally-run cities. To make quarterly, annual and mid-period reports on the situation of implementation of programs according to the uniform regulations on contents and forms.

- To guide and request the provincial/municipal People’s Committees to fully implement the contents and tempo of reporting on the situation of implementation of NTPs according to general regulations.

4. Tasks of agencies assigned to manage and implement projects of the programs.

For a number of NTPs, apart from an agency assigned by the Prime Minister to generally manage the entire program, other ministries and/or branches are assigned to manage and organize the implementation of a number of projects. Those ministries and/or branches shall have the following tasks:

- Annually, basing themselves on the guidance of the NTP-managing agencies, the ministries shall proceed to elaborate plans for the fulfillment of targets and tasks, propose resources for implementation of projects under the NTPs, which have been assigned to the ministries for management and implementation, then send them to the program-managing agencies, the Ministry of Planning and Investment as well as the Ministry of Finance for general synthesis into plans of the NTPs.

- To organize the defense of the annual plans of the assigned projects before the NTP-managing agencies, with the participation of the Ministry of Planning and Investment and the Ministry of Finance.

- Basing themselves on the total funding level of the projects, notified by competent authorities, the project-managing agencies shall assume the prime responsibility and coordinate with the program-managing agencies, the Ministry of Planning and Investment and the Ministry of Finance in allocating the projects’ funding to the implementing units. (If there still exist divergent opinions on capital structure and specific levels to be allocated to the implementing units, the opinion of the project-managing agency is decisive). The results of allocation of capital and objectives as well as tasks of the projects shall be sent to the program-managing agencies and concurrently to the Ministry of Planning and Investment and the Ministry of Finance for synthesis into the general budgets of the ministries, central agencies, provinces or centrally-run cities, then submit them to the Prime Minister.

- To guide the hierarchical bodies in localities to coordinate with the provincial/municipal Services of Planning and Investment as well as Finance-Pricing Services in drawing up plans for implementation of the projects (covering tasks, funding, mechanism, policy and measures for organization of the implementation....) for general synthesis into plans on socio-economic development of the localities..

- Depending on the nature and complexity of the projects, the project-managing boards may be set up to assist the heads of the project-managing agencies in organizing the implementation of the projects. Such a board shall be composed of the manager being a leader of the ministry, and members being competent representatives of the sections of planning and accountancy as well as other relevant sections. The regulations on operation of the project-managing boards shall be prescribed by the heads of the project-managing agencies. The funding for operation of the project-managing boards shall be arranged in the regular operation funds of the project-managing agencies. The spending regime shall comply with the regulations of the Ministry of Finance.

- In addition to the source of allocated fund, to be entitled to mobilize other resources as provided for by law in order to supplement capital for the implementation of projects of the programs; report to the program-managing agencies (if any) on the mobilization levels and must make payment and settlement according to the current financial regulations (if directly using the fund).

- To take responsibility for the use of funds of projects assigned for implementation for the right purposes, with efficiency and without waste and loss.

- To report to the NTP-managing agencies, the Ministry of Planning and Investment and the Ministry of Finance on the situation of implementation of projects of the NTPs managed by the ministries and comply with the prescribed contents, forms and time limits.

5. Tasks of the provincial/municipal People’s Committees:

The provincial/municipal People’s Committee presidents shall have to uniformly manage the resources, administer and organize the fulfillment of the objectives and tasks of the NTPs operating in their respective localities, covering the following contents:

- Setting up the local NTP Steering Boards to assist the provincial/municipal People’s Committees in managing, planning, integrating and administering the implementation of, NTPs in the localities. The head of the Steering Board shall be a leading official of the provincial/municipal People’s Committee. The Standing Member of the Steering Board shall be a leading official of the provincial/municipal Service of Planning and Investment, and its members shall be representatives of the leaderships of the concerned Services, departments, branches. Each province or centrally-run city shall set up only one Steering Board for general administration of all NTPs implemented in its locality. The regulations on operation of the Steering Boards shall be decided by the provincial/municipal People’s Committees. The funding for operation of the Steering Boards shall be supplied by the local budgets. The spending regime shall comply with the regulations of the Ministry of Finance.

- Annually, based on the guidance of the NTP- managing agencies, the Ministry of Planning and Investment and the Ministry of Finance, the provincial/municipal People’s Committees shall have to draw up the annual plans of the NTPs (objectives, tasks, funding, measures for organization of the implementation) and send them to the project- and program- managing agencies for general synthesis into the plans of projects, NTPs for sending to the Ministry of Planning and Investment and the Ministry of Finance for general synthesis into the plans of the NTPs.

- Organizing the appraisal and approval of projects of the NTPs managed by localities according to the current regulations.

- Organizing the integration and coordination of resources of the NTPs: Based on the characteristics, nature and operation contents of each program, together with the specific characteristics of their localities, the provincial/municipal People’s Committees shall organize the integration of projects under their respective management right at the stage of distribution of cost estimates in order to avoid overlapping and reduce the intermediaries and concentrate resources on priority objectives.

- In addition to the centrally-allocated funding sources, the local resources should be mobilized (including funding, work days and other material elements) for supplementation to the implementation of the programs; reporting the level of funding supplementation of each program (if any) to the program-managing agencies, the Ministry of Finance and the Ministry of Planning and Investment, and having to make payment and settlement under the current financial regulations.

- Assigning plan norms regarding the objectives, tasks and funding of NTPs in the localities under the local management to the project owners and the People’s Committees of urban districts or rural districts for implementation.

- Taking responsibility for the use of funds of the NTPs for the right purposes, with efficiency and without waste and loss, and being held responsible for failure to fulfill the objectives and tasks of the NTPs operating in the localities for the reason that the funding has not been used for the right purposes.

- Reporting to the NTP- managing agencies, the Ministry of Planning and Investment and the Ministry of Finance on the situation of implementation of the NTPs under their respective management in the localities according to the prescribed contents, forms and time limits.

- Organizing the inspection and supervision of the implementation of programs in localities, mainly communes and wards. Redressing in time phenomena of lack of democracy in the implementation of programs, and severely handling cases of funding loss due to irresponsibility or corruption.

Part IV

REPORTING REGIME

1. Reporting on allocation of NTP cost estimates:

- For ministries, branches and central agencies: Basing themselves on the State budget estimates allocated by competent authorities, they must quickly allocate estimates to their attached units according to the provisions of the State Budget Law in order to ensure that the attached budget-using units receive the NTP budget expenditure estimates together with the regular budget expenditure estimates before December 31 of the preceding year; ensure the compatibility and accuracy in total amount and in detail of each spending item already assigned, and at the same time, sum up the results of allocation in the detailed allocation estimates of the ministries, branches and central agencies, send them to the Finance Ministry for appraisal and use as bases for budget allocations, on January 5 of the subsequent year at the latest. Besides, the ministries, branches and central agencies must send the reports on NTP allocations to the program-managing agencies for monitoring.

The Ministry of Finance shall have to appraise the results of NTP budget estimate allocation by the ministries, branches and central agencies; if finding anything incompatible with the contents of the estimates assigned by competent bodies, it shall request the concerned units to readjust them. Within 15 days after receiving the units’ reports on results of budget estimate allocations, if the Ministry of Finance has no comments thereon, the units’ estimate allocation results shall be considered being approved..

- For provincial/municipal People’s Committees: Basing themselves on the total NTP budget estimates assigned by the Prime Minister, the provincial/municipal People’s Committees shall proceed to coordinate, integrate and allocate funding for each target and each task of the NTPs implemented in their respective localities, clearly defining the central budget capital and the local mobilized capital for use as basis for budget allocation together with the allocation of local budget estimates for submission to the provincial/municipal People’s Councils for approval. The results of NTP allocation shall be addressed to the Ministry of Finance, the Ministry of Planning and Investment and the NTP-managing agencies within 5 days after they are approved by the provincial/municipal People’s Councils.

2. Reporting on the situation of implementation of NTPs:

The ministries, branches, central agencies and localities shall have to make and send the reports on the implementation of the NTPs to the Ministry of Finance, the Ministry of Planning and Investment and the NTP-managing agencies.

The periodical reports shall include the quarterly, annual and mid-term reports (the mid-term reports shall apply to NTPs with the 5-year terms, which are made by middle of the program-implementing duration) according the specified forms and time limits:

- The ministries, branches, central agencies and agencies assigned to manage and implement projects of the NTPs as well as the provinces and centrally-run cities shall have to make reports on the situation of implementation of NTPs (including work volume, tasks and funds implemented in the period) and send them to the Ministry of Planning and Investment, the Ministry of Finance and the program-managing agencies (the funding parts whose implementation is monitored by the program-managing agencies).

- The NTP-managing agencies: Basing themselves on the reports of the provincial/municipal People’s Committees, ministries and central agencies, the agencies assigned to manage and implement the projects of the NTPs shall have to synthesize the period (quarterly, annual and mid-term) reports on the situation of implementation of the NTPs and send them to the Government’s Office, the Ministry of Planning and Investment and the Ministry of Finance.

- Time for submitting reports:

For the ministries, branches, central agencies, agencies assigned to manage and implement the projects of the NTPs and the provincial/municipal People’s Committees: The quarterly reports shall be submitted within 30 days after the end of the quarter; the annual reports shall be submitted by the end of March of the subsequent year at the latest.

For NTP-managing agencies: The quarterly reports shall be submitted within 45 days after the end of the quarter; the annual reports shall be submitted by the end of April of the subsequent year at the latest.

3. NTP settlement reports:

The settlement of NTPs shall be carried out simultaneously with the annual State budget expenditure settlement of the ministries, branches, central agencies and localities according to the provisions of the current State Budget Law. Together with the data on settlement of the annual funding for implementation of NTPs, the ministries, branches, central agencies and localities shall have to explain in detail in their budget settlement reports the results of implementation of the NTPs regarding the volumes of tasks and targets already implemented correspondingly to the implemented funding amounts.

- Where the ministries, branches, central agencies and the provincial/municipal People’s Committees fail to comply with the regulations on the reporting regime prescribed at Points 1,2 and 3, Part IV of this Circular, the finance bodies shall temporarily stop the allocation or notify the State Treasury to stop the payment of NTP funding till the reports are received.

- The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance in synthesizing and assessing the situation, proposing solutions to the Prime Minister for consideration and decision in order to remove obstacles and difficulties, redress shortcomings in time in the course of implementation, ensuring that the ultimate goals of the NTPs are not sidetracked.

Part V

IMPLEMENTATION PROVISIONS

- This Circular takes effect 15 days after its promulgation. The previous provisions contrary to the provisions of this Circular are all hereby annulled.

- The ministers, the heads of the ministerial-level agencies, the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Circular.

In the course of implementation, if meeting with any difficulties and problems, the ministries, branches and localities are requested to report them to the Ministry of Planning and Investment and the Ministry of Finance for study and settlement.

Minister of Planning and Investment
VO HONG PHUC

Minister of Finance
NGUYEN SINH HUNG